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IMPACTS OF NATURAL GAS ON ELECTRICITY & HOME HEATING MARKETS

IMPACTS OF NATURAL GAS ON ELECTRICITY & HOME HEATING MARKETS. Restructuring Roundtable April 30, 2010. Susan Reid, Senior Attorney Director, MA Clean Energy & Climate Change Initiative (617) 850-1740 sreid@clf.org. About CLF.

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IMPACTS OF NATURAL GAS ON ELECTRICITY & HOME HEATING MARKETS

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  1. IMPACTS OF NATURAL GAS ON ELECTRICITY & HOME HEATING MARKETS Restructuring Roundtable April 30, 2010 Susan Reid, Senior Attorney Director, MA Clean Energy & Climate Change Initiative (617) 850-1740 sreid@clf.org

  2. About CLF • Founded in 1966, CLF uses legal advocacy, science and economics to protect the people and environment of New England. • Four program areas: • Clean Energy & Climate Change • Ocean Conservation • Clean Water & Healthy Forests • Healthy Communities & Environmental Justice • Environmental consulting affiliate: CLF Ventures

  3. The climate context: 80% below 1990 levels by 2050

  4. Natural Gas = Key Transitional Fuel • ~ 50% lower GHG emissions as compared to coal-fired generation in New England* • Other pollutants too (PM, Pb, Hg, etc.) • Supply-side of the equation has shifted significantly • Marcellus Shale • New LNG terminals (Canaport, offshore) • New technologies and markets (microCHP)

  5. But “transitional” is key: • By 2050, must significantly reduce use of natural gas • So, need to consider long-term picture for any major new natural gas infrastructure ✔Repowering coal plants with natural gas ? Other markets -- CNG vehicles ✖New LNG terminals w/out demonstrated need

  6. Shale gas development

  7. Waste pit/shale gas

  8. Shale Gas Extraction – Environmental Impacts • Release of toxic contaminants: natural (benzene, arsenic, Hg) and chemical • Groundwater contamination – risks for drinking water supplies, including NYC’s • Lifecycle GHG emissions/studies underway • Huge volumes waste (contaminated H2O) • Destruction of land, wildlife habitat • Noise, community disruption

  9. …and inadequate regulation… • Exemptions/loopholes in federal environmental statutes: • Clean Air Act (wells not aggregated) • Clean Water Act (stormwater/extent disputed) • Safe Drinking Water Act • Resource Conservation and Recovery Act • CERCLA (Superfund) *Pending FRAC Act would close some loopholes

  10. Methane in water-CO

  11. Contaminated drinking water - PA

  12. Potential to improve shale gas environmental performance: • Capture air emissions • Reduce, reuse, recycle toxic substances • Substitute non-toxic alternatives • Closed-loop, pitless drilling • Prevent leaks • Well clustering, centralized operations, remote telemetry, piping systems

  13. “Greener” approaches w/ cost savings benefits: • Non-toxic fracking fluids found to be effective and less costly • Closed loop drilling shown to save up to $180,000 per pit • Cost savings from capture and sale of methane • Reuse of drilling fluid shown to result in 50%+ drilling cost savings source: NRDC

  14. Shale gas v. LNG • Potential GHG emission reduction benefits • Must consider lifecycle GHG emissions • Energy security – domestic supply • Environmentally responsible practices are essential in all contexts

  15. Sue Reid, Senior Attorney Director, MA CECC Initiative Phone: 617-850-1740 E-mail: sreid@clf.org For more information…

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